Satya-TPG targets private equity deals in Africa with $1bln

TPG joined the ranks of leading global private equity firms targeting investments in Africa with the announcement last week that it is planning to invest up to $1 billion in a tie-up with Satya Capital, Mo Ibrahim’s Africa-focused investment firm. Ibrahim told Reuters that Satya will also make up to $400 million available for investment under the agreement. Satya-TPG, the special purpose vehicle established by the partnership will target opportunities in healthcare, TMT, consumer and financial services for deals ranging up to $300 million in size.

Investments will be funded from TPG Growth, the private equity firm’s middle market and growth equity investment platform which has $7 billion in assets under management and committed capital. The fund’s investment focus covers a broad range of industries and geographies including the USA as well as the larger emerging markets.

“There’s nothing we’d like more than to invest $1 billion across Africa,” William McGlashan, TPG Growth’s managing partner told the Financial Times, which first reported the story. “The last major market that we have gone into in the world is Africa; and we wanted to do it the right way.”

The partnership aims to combine TPG’s investment and business building expertise with Satya Capital’s regional expertise, relationships and on-the-ground experience to source and build distinctive businesses. The press release announcing the partnership quotes TPGs’ co-founder, David Bonderman as saying “TPG was an early and successful investor in both Asia and Latin America and, working with Mo and Satya, we believe now is the time to recreate that same success in Africa.”

Frederick Antwi joined TPG from Goldman Sachs in late 2014 to define the firm’s private equity strategy for Africa. He will be joined by Satya Capital’s Jide Olarenwaju and Samir Abhyankar to form the core of the new partnership’s Africa investment team. William McGlashan tells the Financial Times that the first deal will go through in the next few weeks.